Silver Mines Ltd (ASX:SVL) Commences Diamond Drilling at Elsienora Project

13 February 2025

Price Sensitive Announcement $

Highlights:

• Diamond Drilling has commenced at the Elsienora Project (EL9588), acquired in 2023 and located adjacent to the Company’s Tuena Gold Project.
• Initial program to target the Picker, Barite and Elsienora Prospects, which all have potential to host “McPhillamys” style gold mineralisation.
• Significant historic drilling across the Picker and Elsienora Prospects include:
  o 18m @ 0.44g/t Au, 5.4g/t Ag and 0.18%Ba from 27 metres,
  o 8m @ 0.55g/t Au, 23.2g/t Ag and 0.24%Ba from 26 metres, and
  o 21m @ 0.89g/t Au from 207 metres.
• Silver Mines will complete an initial ~1,700m of diamond drilling to target silver and gold mineralisation.

Overview:

Silver Mines Limited has announced that drilling has commenced at the Tuena Gold Project, located 80 kilometres south of the city of Orange in New South Wales (Figure 2).

The Elsienora Project was acquired as an Exploration Licence Application (“ELA”) in 2023 and forms part of the Tuena Gold Project portfolio. The Project has been held by various companies since the 1970s including Alkane Resources Ltd, with previous exploration including diamond and RC drilling, geophysical surveys, and surface geochemical surveys. The Project is considered highly prospective for orogenic gold and volcanogenic massive sulphide mineralization. Alkane also identified potential for a third style of sulphide-rich disseminated gold-silver-barium (epigenetic VMS) mineralization, analogous to the nearby McPhillamys Gold Deposit. Review of historic data indicates the Project has significant underexplored potential for gold and silver mineralization, including the Picker Prospect which represents a McPhillamys-style target worthy of drill testing.

Company Notes:

Jo Battershill, Silver Mines Limited CEO, comments “We are very excited to be commencing a diamond drilling program at this highly prospective gold project. Historical results from previous explorers have firmed up the prospectivity and conceptualised correctly the potential
for McPhillamys Style gold mineralisation. In our view, however, the historic drilling didn’t fully test the concept and our initial diamond drilling program should fill in some of those knowledge gaps. The extensive, and highly prospective Godolphin-Copperhannia Fault corridor remains
vastly underexplored, and Silver Mines holds a commanding exploration package across this structure. We look forward to updating the market as the program progresses

Full ASX Announcement: Silver Mines Ltd ASX Announcement